The application of premium formulae to mortality rates is normal actuarial practice. Mortality tables are generally constructed based simply on the fact that the mortality, or risk of death, of individuals, both male and female, increases with age. Mortality tables are constructed based on the available research statistics relating to the type of population under measurement. Examples include tables of life assured mortality and tables of general population mortality.
These tables do not generally take into account specific life impairments in individuals. To do so demands a unique approach, recognizing that, for certain individuals, their impairments are such that the timing of their death is much more likely to be determined by that particular impairment rather than by the normal ageing process as recognized by existing mortality tables.
The present invention provides a process and apparatus for the determination of premium tables to produce annuity rates, wherein specific life impairments are specifically factored into the determination.